1. Project description
UK Export Finance (UKEF) has agreed to provide support to the Ghana Ministry of Finance for Phase 2b of the redevelopment and modernization of Kumasi Central Market (KCM, or “the Project”)[footnote 1]. The Ministry of Local Administration and Rural Development (the Purchaser) will purchase services related to the design, construction and operation of the Project on behalf of the Kumasi Metropolitan Assembly (KMA) and the Ministry of Finance. Contracta Construction UK Limited (Contracta) will undertake the design and construction of the project. A market operator will be appointed by KMA.
A key objective of the project is to improve environmental, health and safety issues, as well as congestion, in and around the KCM. The redeveloped KCM will be equipped with a fire detection system and will have a fire station. A dedicated electrical substation will be installed and there will be back-up generators on site. To reduce congestion, traders will be allocated defined market stalls, the width of sidewalks along the roads will be increased, and pedestrian barriers will be established to prevent trade on the roads. The redeveloped KCM will also have parking, sufficient sanitation facilities, adequate drainage, defined waste storage areas, a waste treatment plant and modern refrigeration systems.
Phases 1 and 3 of KCM’s development are considered associated facilities[footnote 2].
2. Project sector
The project is in the civil construction sector.
The project is developed by the Kumasi Market Authority. Contracta will provide construction services for the project.
4. British exporters
Contracta Construction UK Limited
5. Bank of Export Credit Agent
6. UK Export Finance support amount
The main value of the UKEF support is around 145 million euros.
seven. OECD Common Approaches and Equator Principles
The UKEF has classified the project in category B, that is to say having environmental, social and human (ESHR) impacts which are few in number, specific to the site, of which few (if any) are irreversible, and for which mitigation measures are more readily available) in line with the definition of the 2012 OECD Common Approaches (revised 2016) for officially supported export credits and environmental and social due diligence (the “OECD Common Approaches”) and the Equator Principles (2020).
8. Environmental, social and human rights standards
ESHR documentation related to the project was reviewed for alignment with the International Finance Corporation’s (IFC) 2012 Performance Standards (PS) on Environmental and Social Sustainability and the Group’s Environmental, Health and Safety (EHS) guidelines. the World Bank.
The applicable IFC SPs were:
- PS1: Assessment and management of environmental and social risks and impacts
- PS2: Work and working conditions
- PS3: Resource efficiency and pollution prevention
- PS4: Community health, safety and security
- SP5: Land acquisition and involuntary resettlement
The applicable World Bank Group EHS guidelines were as follows:
- General EHS Guidelines (2007)
- EHS Guidelines for Water and Sanitation (2007)
9. Nature of ESHR impacts
The review of the risks and potential impacts on ESHRs took into account the following impacts, receptors and issues during the construction and operation phases of the project:
- climate change
- noise and vibrations
- hazardous materials management
- waste and wastewater management
- drainage management
- atmospheric emissions
- worker well-being
- management of subcontractors and third-party suppliers
- grievance mechanisms
- occupational health and safety
- emergency planning and response
- traffic management
- community engagement
- economic displacement
- community health, safety and security
ten. ESHR impact assessment
A review was undertaken in accordance with the requirements of the OECD Common Approaches to identify the potential ESHR risks and impacts of the project and how they would be managed effectively.
The exam included:
- Documentary review of project documentation: environmental and social impact assessment, environmental and social management plans and stakeholder engagement plan
- Follow-up meetings and interviews with the relevant representatives of the project
The results of this review formed the basis for assessing the project’s alignment with relevant international standards and recommendations for future compliance and follow-up.
11. Climate change considerations
UKEF considered the potential direct and indirect greenhouse gas (GHG) emissions from the project and the effects of climate change drivers on the project as part of its ESHR review. The project is not considered to be a carbon intensive enterprise (such as fossil fuels or petrochemicals) and “high” GHG emissions exceeding the relevant quantification and reporting thresholds set by international standards were therefore not considered. not reasonably envisaged. In addition, a significant increase in road traffic with associated GHG emissions is not anticipated. Although the market may attract more visitors, their travel will likely be on foot. The review found that the project design took into account the potential physical impacts of climate change, such as changes in precipitation and weather conditions.
Various actions have been agreed between the project developer, the operator and the parties involved in the financing, which are necessary to ensure the continued alignment of the project with international standards. Following the agreement of these commitments, it was concluded that the project should meet relevant international standards throughout the project cycle. UKEF therefore decided to support the supply of capital goods and services by UK exporters to the Project.
A condition of the support is that the project is subject to environmental and social monitoring to ensure that the project complies with relevant international standards throughout the duration of the support.
UK export financing